IAES Impax Asian Sub

TIDMIAEM TIDMIAES

RNS Number : 9897E

Impax Asian Environmental Mkts Plc

17 May 2013

Impax Asian Environmental Markets Plc (the "Company")

Interim Management Statement

For the three months ended 31 March 2013

This interim management statement covers the period from 1 January 2013 to 31 March 2013 (the "Period"), and is prepared in accordance with the UK Listing Authority's Disclosure and Transparency Rule 4.3.

Investment Objective

The Company's investment objective is to generate long-term capital growth through investment in a diverse portfolio of companies in the markets for cleaner or more efficient delivery of basic services of energy, water and waste in the Asia-Pacific Region.

Performance

During the Period, the Company outperformed all its comparative indices. The Company's undiluted NAV per Ordinary Share (excluding current year net revenue) rose by 15.9% from 94.1p to 109.1p while the MSCI AC Asia Pacific ex-Japan Index and the FTSE Environmental Opportunities Asia Pacific ex-Japan Index rose by 9.2% and 12.6% respectively and the FTSE Environmental Opportunities Japan Index and the Composite Index(1) rose by 15.7% and 13.2% respectively (total returns in pounds sterling).

Asian equity markets rallied in the Period, supported by anticipation of further growth following the smooth leadership transition in China. Global markets were encouraged by the continued recovery in the US, particularly the increase in construction activity. In Japan the Yen continued to weaken following the change in Government in December and the subsequent announcement of a 2% inflation target.

Many environmental sectors gained favour with investors during the Period with a recovery in performance from renewable energy, Light Emitting Diodes ("LEDs") and industrial automation. The water and pollution control sectors continued to re-rate, driven by strong underlying growth and new project wins, underpinned by government support. During the Period, Japan launched its generous solar Feed-in-Tariff and announced plans to increase the renewable energy target to 10% by 2030 from the current level of 1%.

As at 15 May 2013the Company's undiluted NAV per Ordinary Share (excluding current year net revenue) was 111.3p.

(1) Calculated by Impax Asset Management Limited and consisting of 80% FTSE Environmental Opportunities Asia Pacific (ex-Japan) and 20% FTSE Environmental Opportunities Japan Indices

Gearing

During the Period, the Company continued to operate with a loan of US$40m. On 17 April 2013, the Company announced that it would not be renewing its loan facility which was due to expire on 28 April 2013. The US$40m loan was repaid in full on 26 April 2013.

Discount

Over the Period, the IAEM Ordinary Share price traded at an average discount to net asset value of 14% and stood at 10% at the Period end. The Board bought back 1,330,000 Ordinary Shares in the Period to be held in treasury. The discount to net asset value as at 15 May 2013 was 7%.

Portfolio Activity

During the Period, the Company added two new holdings to its portfolio and sold out of one position. The five largest holdings as at 31 March 2013 are set out below.

 
 Company              Activity                     Country of listing     Portfolio 
                                                                           weighting 
 ENN Energy           Natural gas distribution           China            4.2% 
                      Solar and energy efficient 
 Xinyi Glass           glass                             China            3.7% 
                      Efficient electronic 
 Murata                components                        Japan            3.3% 
 Manila Water         Water Utility                      Philippines      3.2% 
 Delta Electronics    Efficient Power electronics        Taiwan           3.1% 
 
 

Strategy Outlook

Economic data has stabilised across the region and there are early indications of a modest rise in earnings expectations. Monetary policy is generally supportive and inflationary pressures are acceptable. In China the leadership and government transition has been smooth and early developments are encouraging with increased commitments to infrastructure development and urbanisation. The pollution issues in China are also highlighting the urgency of environmental policy development and more stringent targets. In Japan the government has announced significant quantitative easing, targeting 2% inflation, rising asset prices and weakening Yen. We expect this to be positive, particularly for export-oriented energy efficiency companies.

It is encouraging to see strong earnings growth and we believe that Asian environmental markets should continue to re-rate over the next 12 months as earnings deliver against expectations.

Reconstruction Proposals

On 28 March 2013, the Company announced that the Board had been informed by its brokers, Canaccord Genuity, that shareholders representing in aggregate almost half of the Company's issued share capital were potential sellers of their stakes in the current market and that given the quantum of shares involved, the Board would be considering the most appropriate course of action for the Company to take to address this situation.

Following a subsequent change in ownership of nearly half of its Ordinary Shares, on 1 May 2013 the Company announced that having canvassed the opinions of its largest Ordinary Shareholders, and following a review of all the options available, the Board had determined that the most appropriate course of action would be to wind up the Company and offer Ordinary Shareholders the choice of rolling over all or part of their investment into Impax Asian Environmental Markets (Ireland) Fund, a sub-fund of an open-ended investment entity managed by Impax Asset Management with a broadly identical investment policy to that of the Company, or realising all or part of their investment for cash.

A circular setting out full terms of the proposals will be sent to shareholders in due course.

It is anticipated that at least half of the Company's assets will be held in cash or near cash assets by the time of the first general meeting of Shareholders to be convened in connection with the proposals (expected to be in early July). The Board has also asked the Company's Investment Manager to begin to realize the less liquid stocks in the Company's portfolio in an orderly fashion.

The interim management statement will be made available on the Manager's website www.impaxam.com

17 May 2013

This information is provided by RNS

The company news service from the London Stock Exchange

END

IMSZMGMKRNGGFZG

Impax Asian Sub (LSE:IAES)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024

Impax Asian Sub (LSE:IAES)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024